India’s transition to clean energy has accelerated with record renewable power additions. However, adding renewable capacity is not enough. This is because renewable power needs to be transported to industrial and urban centres. This is where High Voltage Direct Current (HVDC) transmission is expected to play a central role.
HVDC is a transmission technology that carries large volumes of electricity over long distances with lower transmission losses than conventional alternating current systems. It is particularly suited for evacuating power from large solar and wind parks, strengthening the national grid, and improving the reliability of electricity supply.
The need for HVDC is growing rapidly as India works towards its target of 500 GW of non-fossil fuel power capacity by 2030. To support this transition, the Central Electricity Authority has planned a major expansion of the interstate transmission network under the National Electricity Plan. The opportunity extends well beyond project developers.
According to a recent Citi Research report, India’s HVDC equipment market could offer a ₹1.6 lakh crore opportunity for original equipment manufacturers, with localisation norms and certification requirements being major barriers to entry.
Against this backdrop, three market leaders could be key beneficiaries of India’s expanding HVDC ecosystem, supported by their indigenised supply chain and technological moats.
Separately, industry reports suggest Chinese players lack a meaningful track record in India’s HVDC market. This, along with localisation requirements, provides an advantage to established players despite the government’s temporary two-year exemption from procurement restrictions to address domestic equipment shortages.
Having said that, the stock prices of these companies did take a knock post the announcement. Over a year, however, their stock prices have still generated solid returns. Hitachi has gained 52.7% and GE Vernova 57%. However, Siemens Energy has underperformed, returning just 2.8% during the period. Let’s take a closer look at how they are positioned in the growing HVDC segment.
#1 Hitachi Energy India: A Global HVDC Leader with a Strong Domestic Pipeline
HVDC technology represents one of the core market segments and critical growth levers for Hitachi Energy. It is a global leader in Voltage Source Converter (VSC) and Line Commutated Converter (LCC) technologies. These business moats protect the company from Chinese competition, rendering it a minor threat.
LCC is best suited for transmitting large blocks of electricity over long distances. However, it requires a strong AC grid and is less flexible for renewable energy integration. On the other hand, VSC is ideal for integrating renewable energy because it can work with weak grids, provides voltage support, and offers greater operational flexibility.
Revenue Breakdown & The Two-Thirds HVDC Backlog Visibility
In FY26, HVDC revenues contributed approximately ₹1,100 crore of the total revenue of ₹8,148 crore. Management views HVDC as a margin-accretive segment that forms a substantial portion (about two-thirds) of the company’s order backlog. This provides long-term revenue visibility.
Some of the major HVDC projects in the order book and pipeline include major corridors such as the Khavda-Nagpur and Bhadla-Fatehpur. The order book also includes refurbishment and upgrade of HVDC control systems, such as the implementation of the MACH control system for state utility MSETCL.
Management expects 3 to 4 new HVDC projects to enter the domestic bidding pipeline over the next two years. The pipeline includes a mix of LCC and VSC technologies, with Hitachi holding a leadership position. Management states no internal capacity bottlenecks to execute additional large HVDC orders over the coming years.
Manufacturing Expansion: The ₹4,000-Crore Greenfield Plant in Vadodara
To support long-term HVDC demand, the company is building a greenfield facility in Vadodara as part of a total capex of ₹4,000 crore. This plant will manufacture large power transformers and HVDC converter transformers for both LCC and VSC platforms by Q4CY2028.
Management noted that execution of the HVDC order book was significantly lower in FY26. Consequently, the margin benefits of these high-value HVDC contracts will gradually be reflected in the financials as project execution increases in the coming quarters. Moreover, HVDC contracts also include cost escalation protection through pass-through mechanisms.
Hitachi Energy India Share Price
#2 GE Vernova T&D India: Building Large-Scale HVDC Corridors for India’s Grid
GE Vernova provides end-to-end HVDC solutions, encompassing both LCC and VSC technology for renewable energy integration. It previously showed its capabilities by commissioning the 6 GW Champa-o-Kurukshetra HVDC link. Management expects minimal near-term impact from Chinese competition, as localisation will take time.
Major Turnkey Wins: Securing Key Corridors from Adani Energy & Power Grid
In Q4FY26, the company secured a turnkey VSC-based HVDC project from Adani Energy for the 2.5 GW Khavda transmission corridor. Additionally, Power Grid also awarded GE Vernova a 1 GW Chandrapur HVDC LCC refurbishment project in December. This order significantly boosted the FY26 order intake to ₹14,776 crore.
Long-Cycle Execution: Translating a ₹21,460-Crore Backlog into FY29 Revenue
These bookings have increased the company’s order backlog to ₹21,460 crore as of March 31, 2026. As the completion timeline for the HVDC project stretches over several years, revenue conversion from the Adani VSC contract will commence from FY29. This is because the first two years focus on engineering, detailed design, integrated testing, and procuring components.
Once full-scale execution is reached, management estimates that even a 30% annual execution rate on large HVDC projects can generate ₹3,000 crore to ₹5,000 crore in annual revenue. To support long-cycle HVDC demand, GE Vernova is executing a capex program exceeding ₹1,000 crore.
Deepening Localisation: Domestic Valve Manufacturing Beyond Mandatory Norms
Currently, 100% of HVDC transformers are supplied from Indian factories. System control platforms, engineering design studies, and integrated testing are also manufactured in India. The new plant will establish a manufacturing facility for LCC HVDC valves and VSC-STATCOM valves.
This plant will further deepen localisation of transformers and controls, as domestic value-add has increased significantly compared to past project cycles. Nevertheless, GE Vernova fully complies with all Government of India localisation norms, exceeding requirements even for tenders like Khavda-Olpad where mandatory localisation was set at 0%.
#3 Siemens Energy: Positioned for the Shift Towards Flexible HVDC Networks
Siemens Energy is a pure-play energy technology company. The company operates across the entire energy value chain, serving utilities, industrial verticals, data centres, and infrastructure sectors such as railways and maritime. The company’s operations are divided into two divisions: Power Transmission (55.8% of turnover) and Power Generation (44.2%).
Siemens also manufactures its portfolio locally at its Indian factories, except for large gas turbines (due to lack of domestic demand) and electrolysers. The company is also a leading HVDC player, offering VSC solutions as part of its power transmission portfolio.
Technology commissioned by Siemens accounts for approximately 30% of India’s total HVDC capacity, including key cross-border power transmission links. Siemens has won and delivered large HVDC transformer orders to major domestic power utilities. Its technological moat in VSC technology shields it from emerging competition.
The VSC Advantage: Why Embedded Grid Stabilisation Beats Traditional LCC
Siemens aims to focus on VSC technology rather than traditional LCC technology. While traditional LCC technology transfers large power blocks from one location to another, it lacks built-in mechanisms to manage renewable energy interruptions. This requires complementary grid stability investments such as STATCOMs and synchronous condensers.
In contrast, Siemens Energy’s VSC technology has grid-stabilising capabilities already embedded directly within the system. This makes it inherently superior for integrating variable renewable energy sources into the main grid. Management expects the market to gradually move from LCC technology to VSC technology.
H1 FY26 Financial Momentum: 29.7% Growth in Transmission Revenue
Financially, the power transmission segment’s revenue grew 29.7% year-on-year to ₹2,400 crore in the half year ended 31 March, 2026. Core profit increased to ₹487 crore with margins at 20.3% due to improved operating leverage and higher export contributions. The power transmission segment order book grew by 27.5% year-on-year to ₹12,520 crore in H1FY26.
Strategic Capex: Doubling Power Transformer Capacity to 30,000 MVA
To meet growing grid and industrial demand, Siemens is expanding its capacity. The company is doubling its power transformer capacity from 15,000 MVA to 30,000 MVA. Siemens is also expanding its high-voltage switchgear capacity. Additionally, it has approved ₹2,060 crore to build a new greenfield power transformer manufacturing plant.
Here is a quick comparison of the three companies leading India’s HVDC market:
| Particulars | HVDC Strength | Key Growth Driver | Capacity Expansion | Key Watchpoint |
| Hitachi Energy | Leader in LCC & VSC | Large HVDC order backlog | Vadodara HVDC transformer plant | Execution of existing orders |
| GE Vernova | End-to-end HVDC solutions | Khavda VSC project and localisation | ₹1,000+ crore capex | Long project execution cycle |
| Siemens Energy | Focus on VSC technology | Shift from LCC to VSC | ₹2,060 crore transformer plant | Pace of domestic HVDC orders |
| Source: Investor Presentation, Annual Report and Management Commentary | ||||
While all three are well-positioned to capitalize on the HVDC opportunity, each company offers a different combination of technology leadership, manufacturing scalability, and execution capabilities.
Comparing the HVDC Transmission Giants
All three companies operate efficiently, as evidenced by their strong return ratios. GE Vernova leads with the highest return on capital employed (RoCE) and return on equity (RoE), followed by Siemens Energy and Hitachi Energy.
From a valuation perspective, all three companies are trading at a premium to the industry median. Compared to their 3-year historical median, both Hitachi and GE Vernova are trading at a discount. Still, their valuations are at a significant premium.
| Peer Comparison (X) | ||||
| Particulars | Price-to-Earnings Multiple | Return ratios | ||
| Company | 3Y Median | ROCE (%) | ROE (%) | |
| Hitachi Energy | 138.0 | 198.6 | 29.4 | 21.9 |
| GE Vernova | 86.5 | 110.3 | 76.4 | 57.3 |
| Siemens Energy | 86.0 | NA | 67.8 | 50.5 |
| Industry | 32.8 | 23.4 | 19.1 | |
India’s transmission network is entering a long investment cycle as the country expands renewable energy capacity and strengthens the national grid. As a result, HVDC technology is expected to remain at the centre of this transition because it enables efficient long-distance power transmission and renewable integration.
Hitachi Energy India, GE Vernova, and Siemens Energy India are among the few companies with proven HVDC capabilities. They are well placed to benefit from the upcoming project pipeline. It’s worth adding them to your watchlist to keep them on your radar.
Disclaimer
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data were not available have we used an alternate, widely used, and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The articles’ content and data interpretation are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources, and only after consulting such independent advisors as may be necessary.